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Last Updated: 12/29/2016

Royalty Recipients

​Royalty recipients should claim the amount of Minnesota income tax withheld by completing Schedule M1W when filing their Minnesota Individual Income Tax return. Recipients should not send in their 1099 or other form reporting withholding.

Individuals who had no Minnesota income tax liability in the preceding year and reasonably expect to have no liability for the current year can claim exemption from withholding tax by completing Form W-4MN.

Nonresi­dent individuals will not incur a Minnesota income tax liability and are not required to file a 2016 Minnesota Individual Income Tax return if their Minnesota assignable gross income from royalties and all other Minnesota sources is less than $10,350.

If tax is incorrectly withheld by the royalty payer, the royalty re­cipient must file a Minnesota income tax return to obtain a refund.